Pretax profit was £10.1 million, up from £6.6 million for the same quarter a year earlier. Turnover rose 58 per cent to £29.8 million.

As the phone market slows ARM is looking to push its business in the games console market.

Meanwhile Infineon, the chip making unit of Siemens AG, enjoyed a Q1 profit rise of 39 per cent to $151.7 million, from $108.8 million for the same period a year earlier.

The company's memory business has fallen off a bit though. DRAM accounted for 50 per cent of sales and 80 per cent of pretax profit in its last financial year. In this first quarter memory accounted for 30 per cent of sales.

Q1 operating profit for Infineon's wireless communications chip business saw no change from a year earlier at $67.02 million. Operating profit from Infineon's memory-chip business halved to $61.44 million from $122.9 million in the year-before. ®